Sensex Falls 400 Points, Nifty Slips Below 22,400 as Markets Turn Cautious Ahead of RBI Policy and US-China Tensions

Dalal Street started the day on a weak note as investors turned cautious ahead of the RBI Monetary Policy Committee (MPC) outcome. The Sensex dropped by 400 points, while the Nifty slipped below the 22,400 mark, reflecting growing uncertainty in the markets.

Market Sentiment Under Pressure

The pullback comes as traders adopt a wait-and-watch stance, with the RBI’s policy decision expected to influence interest rate expectations and liquidity outlook. Any change in tone or policy stance could significantly impact banking, auto, and real estate sectors.

Adding to the caution is the escalating tension between the US and China, which has cast a shadow over global investor sentiment. Rising geopolitical friction is raising fears of trade disruptions and capital flow volatility, making global markets jittery.

Caution Likely to Continue

Until there is clarity on the central bank’s decision and some easing of global concerns, volatility is expected to remain high in the Indian stock market. Experts suggest that traders may prefer to stay on the sidelines or reduce positions in the short term.